Why You Need Serviced Apartment Insurance: Protecting Your Investment

The concept of serviced apartments has gained immense popularity in recent years. They bridge the gap between hotels and traditional rental properties by offering travellers a home-like environment with the luxuries of hotel services. As lucrative as this business can be, it also comes with its unique set of risks, which is why having serviced apartment insurance is paramount.

1. Nature of the Business: High Turnover and Usage

The unique blend of residential and hospitality elements in serviced apartments means they witness a high turnover of guests. This constant change can lead to increased wear and tear on the property, fixtures, and furnishings. Standard home insurance might not provide adequate coverage for such rapid wear and tear, making serviced apartment insurance a necessity.

2. Liability Coverage

Guest injuries are an unfortunate reality. Whether it’s a slip in the shower, a fall due to a loose carpet, or any other accident, as the owner, you could be held liable. Liability coverage within serviced apartment insurance ensures that if a guest gets injured and decides to sue, your policy can help cover the associated legal expenses and potential compensation.

3. Property Protection Against Guest Damages

With the constant flux of guests, accidental damages can occur more frequently than in traditional rental settings. From accidental breakages to more significant damages, having the right insurance ensures that repair or replacement costs won’t strain your finances.

4. Coverage Against Loss of Income

Imagine there’s a significant damage or a catastrophic event, and your serviced apartment is rendered uninhabitable. The loss of income during the repair or rebuilding phase can be crippling. Serviced apartment insurance can offer coverage for this loss of income, ensuring your financial stability remains intact.

5. Coverage for Contents and Personal Property

Most serviced apartments come furnished and offer various amenities to guests. These contents, be it appliances, furniture, or electronics, are susceptible to damage or theft. A specialised insurance provides coverage for these items, ensuring you don’t bear the brunt of the costs for replacement or repairs.

6. Diverse Range of Guests

Unlike traditional rentals with vetted tenants, serviced apartments can host anyone from business travellers to families on holiday. The diversity means an unpredictable set of behaviours and risks. Insurance tailored to serviced apartments considers these varied risks.

7. Protecting Employee and Staff Interests

If you employ staff to manage or maintain the serviced apartment, you’ll want to ensure their safety and well-being too. An insurance policy can provide coverage for any accidents or incidents involving your employees, which is not only ethically right but also protects you from potential legal complications.

8. Coverage for Additional Services

Many serviced apartments offer additional services like cleaning, in-house dining, or concierge services. These services, while enhancing the guest experience, also introduce unique liabilities. Serviced apartment insurance can be tailored to cover these specific service-related risks.

9. Mitigating Risks with Building Amenities

If your serviced apartment is part of a larger complex with amenities like a gym, pool, or spa, there are additional risks associated with these facilities. Standard property insurance may not provide adequate coverage, making it essential to opt for insurance that caters specifically to serviced apartments.

10. Meeting Mortgage or Lender Requirements

If you have a mortgage on the property or any other form of financing, your lender may require you to have serviced apartment insurance. This is because they want to ensure their financial interest in the property is protected against potential risks.


Serviced apartments, with their blend of hospitality and residential offerings, are a unique business model. While they promise great returns, they also come with their distinct set of challenges and risks. Relying on standard property insurance can lead to potential gaps in coverage, leaving you vulnerable to significant financial losses.

By opting for serviced apartment insurance, you’re not just purchasing a policy; you’re investing in peace of mind. You’re ensuring that no matter what challenges arise, you’re adequately protected. For anyone serious about their serviced apartment venture, this tailored insurance isn’t just an option – it’s a must. By understanding the intricacies of the industry and the potential pitfalls, you can arm yourself with the right insurance policy, making your serviced apartment business both profitable and secure.